Argentina's Dairy Industry in 2023

Argentina, benefiting from its favorable climate and efficient farming practices, holds a vital position in the global dairy market. Known for substantial production volumes and robust export activities, it is a key contributor to the global dairy sector.

Production and Processing

In 2023, Argentina hosts approximately 1.6 million dairy cattle, producing an impressive annual milk volume of around 10.5 billion liters. The country's advanced dairy processing infrastructure enables the processing of about 9 billion liters annually.

Cheese and Milk Powder Production

The cheese production sector is flourishing, with an annual output of approximately 500,000 metric tons. Additionally, Argentina produces around 150,000 metric tons of milk powder and whey each year, catering to both domestic and international demands.

Key Enterprises and Dairy Farms

Major players in Argentina's dairy market include:

• La Serenísima (Mastellone Hermanos S.A.) - Offers a diverse range of dairy products.
• Saputo Inc. - A global dairy leader with a significant presence in Argentina.
• Williner - Specializes in cheese and other dairy products.

Notable dairy farms include:

• Tambos La Unión - Renowned for extensive milk production.
• Estancia La Nueva - A significant contributor to Argentina's milk supply.

Exports and Imports

Argentina plays a crucial role in dairy exports, distributing approximately 3.5 billion liters of milk annually as liquid milk, cheese, and milk powder. The country's strong domestic production limits dairy imports, emphasizing Argentina's self-sufficiency in this sector.

Significant Events in the Dairy Market

Noteworthy developments include:

• The election of a new Board of Directors at Saputo Inc. may influence strategic directions within Argentina's dairy industry.
• Predictions of a significant drop in dairy consumption in 2024, offset by a 50% surge in exports, strengthening Argentina's global market footprint.
• Legal delays in the Bunge-Vicentin case suggesting evolving market dynamics.
• A projected 7% decline in milk output in 2024 due to unfavorable conditions.
• Completion of the EU-Mercosur trade deal to enhance trade relations.
• Suspension of imports from Germany following a Foot-and-Mouth disease alert.
• Hosting the inaugural World Cup at TodoLáctea 2025, celebrating Argentina's cultural link to dulce de leche.

Outlook

The Argentine dairy industry shows growth potential despite challenges such as increasing production costs and climate-related disruptions impacting sustainability and profitability. Innovative measures, like robotic integration at a pioneering farm in Tacural, Santa Fe, have resulted in a daily production of 20,000 liters, aiming for 30,000 liters by year-end.

March 2025 witnessed a nearly 16% increase in milk production from the previous year, with an expected annual growth rate of 6%, indicating a strong recovery. The Expo Suipacha 2025 is a significant industry event, despite SanCor's financial difficulties highlighting complex economic dynamics in the sector. Discussions in Suipacha's dairy region about growth strategies, coupled with a recovery in domestic consumption, offer promise against ongoing export challenges.

Economic pressures remain, as a 10% rise in milk production from January to March faces a lag in milk prices behind inflation, presenting economic challenges for producers. Meanwhile, Arcor's effort to acquire full control of La Serenísima was declined by Mastellone Hermanos, citing undervaluation concerns.

Leche production in Argentina's Cuenca Oeste region increased by 15.9%.

Modified: 2025/05/05

---